The Evolution of the FairMoney Microfinance Bank in Nigeria; from a loan application to a NeoBank
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Over the past 7 years, a good number of lending platforms have sprung up in Nigeria. Rightly so, because access to financial inclusion remains a major scourge for many Nigerians. Access to credit to cover personal and business expenses remains a huge equalizer in the growth and development of the economy.
According to report link, the impact of COVID-19 on consumer lending in Nigeria cannot be overstated as the local economy has been hit by the recession following various foreclosure measures, leading to increased unemployment and lower disposable income. Major financial service providers were already fearful of lending at the start of 2020, with most banks failing to meet the 65% loan-to-deposit ratio, with various sanctions imposed by the Central Bank of Nigeria.
At FairMoney we started with our loan products because we realized there was a huge gap in the market as Nigerians of a certain demographic could not access credit facilities to fuel their businesses and their lives, especially through traditional financial institutions.
Our mission has always been to meet the needs of as many Nigerians as possible. Our approach is to provide millions of Nigerians with loans and capital to meet their immediate needs and, in some cases, to expand their businesses. 117 billion yen in loans since its inception.
“The repayment rate has been impressive as we use technology to underwrite loan facilities and we have also used artificial intelligence to underwrite loan facilities. It is a technology that we have developed in-house and many banks do not have it. This is how we were able to develop our loan portfolio while maintaining a cautious appetite for risk. Our non-performing loans are above the average standard, meaning our growth rate is above the average industry standard. Our default rate has been around 10%, ”Laurin Hainy, CEO / co-founder of FairMoney recently said in an interview.
After 4 years of providing credit, we realized we could have more impact and deliver more value for Nigerians, and this year we have gone from a fast lending app to a full-fledged digital bank. because we recently acquired our microfinance banking license from the Central Bank of Nigeria.
We use the existing infrastructure that we have built to provide customer oriented service to solve the financial needs of clients in Nigeria.
As part of our banking offerings, we offer salary accounts that help people better manage their funds, and bank account holders have access to a number of benefits, including: 100 free bank transfers per month with no fees transaction. We also recently introduced our physical debit card which allows our customers to do more with their funds, in the most convenient way possible. We believe all Nigerians deserve more and at FairMoney we provide them with the tools to get more financially.
In addition to our recently launched physical debit cards, customers expect even more exciting updates over the next two months.
For more information about FairMoney Microfinance Bank, please email [email protected] or call us on +234 1 888 5577